CWU urges action on living costs and bargaining rights

by ethan.brook News Editor

Delegates at the Communications Workers’ Union (CWU) biennial conference in Sligo have unanimously passed an emergency motion demanding urgent government intervention to combat the cost-of-living crisis and the establishment of statutory collective bargaining rights for workers.

The resolution, backed by more than 300 delegates representing the postal, courier, and e-commerce sectors, highlights a growing divide between wage growth and the soaring costs of basic necessities. Union leadership warned that for many, particularly younger employees and those in insecure roles, the current economic trajectory is unsustainable.

The conference comes at a moment of heightened tension for the union, as members at Covalen, a service provider for Meta, prepare for immediate industrial action in the Sandyford Industrial Estate. The dual focus on broad legislative change and specific workplace disputes underscores a strategic shift toward coordinated action across the Irish trade union movement.

The economic squeeze on communications workers

The CWU reported that the costs of fuel, transport, housing, and general household expenses are now outpacing wage increases. This trend is most acutely felt by those in lower-paid positions, where the lack of financial buffers makes inflation a direct threat to housing stability and food security.

From Instagram — related to Communications Workers, General Secretary Seán

CWU General Secretary Seán McDonagh emphasized that the union’s demands are rooted in a quest for basic equity rather than a request for government subsidies. He argued that workers are seeking the systemic tools necessary to improve their own conditions.

“We are asking for fairness – a living wage, the right to organise and bargain collectively, and a government that stands with workers rather than against them,” McDonagh said. He further clarified that the union is not seeking handouts, but rather “the tools to help themselves – collective bargaining, fair wages and a tax system that recognises their contribution.”

The union’s frustration is directed not only at inflation but at what it describes as a government abdication of responsibility. McDonagh warned that if legislative progress is not made, the CWU will move toward coordinated action alongside other major unions, including SIPTU, Mandate, and the Financial Services Union.

The push for statutory bargaining rights

Central to the emergency motion is the demand for statutory collective bargaining rights. Currently, the ability to bargain collectively often depends on the willingness of the employer to recognize the union, rather than a legal requirement to do so. The CWU is campaigning for a change in employment law that would mandate this process, ensuring workers have a legal seat at the table.

While the government has previously introduced a National Action Plan to Promote Collective Bargaining, the CWU asserts that these measures have remained largely rhetorical. The union argues that without legislative teeth, such plans fail to deliver tangible improvements in wages or working conditions for the workforce.

The stakes are particularly high for workers in the e-commerce and tech-adjacent sectors. As the economy shifts toward digital delivery and outsourced moderation, the CWU represents staff from a diverse array of companies, including An Post, eir, Vodafone, DPD, Meta, and TikTok. The union argues that the “gig-style” nature of some of these roles makes statutory protections more critical than ever.

New leadership amid industrial unrest

During the Sligo proceedings, the union elected Tom Sheehan of Mallow, Co Cork, as its new president for a two-year term. Sheehan succeeds former president Frank Donohoe, taking the helm during a period of significant volatility in the labor market.

Upon his election, Sheehan stated that he was acutely aware of the pressures facing the membership, signaling that his tenure would be defined by the fight for better recognition and economic security.

The urgency of Sheehan’s new role is exemplified by the immediate crisis at Covalen. Members of the CWU at the company are scheduled to strike in the Sandyford Industrial Estate over a dispute involving union recognition and redundancy payments. It is understood that over 700 staff are facing redundancy at the firm, which provides essential services to the social media giant Meta.

The planned industrial action follows a timeline of escalation:

  • Initial Strike: Scheduled for the immediate next business day.
  • Follow-up Action: Friday, May 22.
  • Subsequent Action: Friday, May 29.

In response to the unrest, a spokesperson for Covalen stated that the company is continuing to proactively consult with and support affected teams during the transition. The company maintained that it is following all required legal processes and providing employees with access to wellbeing support through its Employee Assistance Programme.

Broadening the labor coalition

The CWU’s strategy involves moving beyond isolated disputes to create a unified front with other labor organizations. By aligning with SIPTU and Mandate, the CWU aims to pressure the government to overhaul employment laws that it views as outdated in the face of a modern, fragmented economy.

The union’s focus on the “living wage” is a key pillar of this coalition. Unlike the minimum wage, a living wage is calculated based on the actual cost of living in a specific region, accounting for the housing crisis that has plagued Irish urban centers.

The outcome of the Covalen dispute will likely serve as a bellwether for how the CWU handles its expanding portfolio of tech-sector workers. If the union can secure recognition and fair redundancy packages in Sandyford, it may provide a blueprint for other outsourced service providers operating within the tech hubs of Dublin.

Disclaimer: This report contains information regarding labor disputes and employment law. It is intended for informational purposes and does not constitute legal advice.

The next critical checkpoint for the union will be the results of the strikes on May 22 and May 29, which will determine whether Covalen enters formal negotiations regarding union recognition and the terms of the redundancies.

We invite our readers to share their perspectives on collective bargaining and the cost-of-living crisis in the comments below.

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